6th Jun 2019 09:17
LONDON (Alliance News) - MITIE Group PLC on Thursday said it swung to profit in its most recently ended financial year as revenue was boosted by strong performance from "top strategic" accounts.
The stock was trading 6.5% higher on Thursday morning at 148.50 pence a share.
The facilities management and energy services provider recorded pretax profit of GBP36.4 million in the year to the end of March versus GBP15.4 million loss reported a year earlier. Revenue rose by 9.4% to GBP2.22 billion from GBP2.03 billion, with organic growth at 5.5%, reflecting strong performance from "top strategic" accounts.
"Our strategy of focusing on our larger businesses and strategic accounts where our technology offer is a true differentiator is beginning to deliver value for shareholders," said Chief Executive Phil Bentley.
"Over financial 2019 we sharpened our focus by continuing to invest in customer service and technology and by exiting non-core businesses," added Bentley.
MITIE Group declared a full-year dividend of 4.0p a share, unchanged on the prior year.
The company noted that it has seen a steady flow of contract wins following the reorganisation of its sales team and the introduction of strategic account managers. The fixed-term order book from continuing operations was broadly flat at GBP4.1 billion.
Looking forward, MITIE Group said it expects to continue to grow revenue organically at between 3% to 4% in the medium term.
For financial 2020, the company said it expects operating profit to grow at mid-single digits, after reporting an operating profit of GBP50.2 million in its financial 2019.
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